-The Table Above Gives the Labor Market for a Small

question 182

Multiple Choice

$$\begin{array} { c c c } \begin{array} { c } \text { Real wage rate Quantity of labor demanded } \\\text { (2005 dollars } \\\text { (millions of hours } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 7.15 & 90 & 25 \\7.65 & 70 & 32 \\8.00 & 60 & 60 \\8.50 & 45 & 70 \\9.00 & 20 & 85 \\\hline\end{array}$$
-The table above gives the labor market for a small foreign economy.A minimum wage law that sets the minimum wage rate at $8.50 per hour produces

• A) equilibrium in the labor market.
• B) a labor surplus of 25 million hours.
• C) a labor shortage of 25 million hours.
• D) a labor surplus of $0.50 per hour.
• E) a labor surplus of 65 million hours.

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Definitions:

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava, characterized by a crystalline texture.

Sand Dunes

Hills of sand formed by the wind, often found in deserts and along beaches.

Dry Climates

Climatic regions characterized by low precipitation, leading to arid or semi-arid conditions.

Kilometers

A unit of length in the metric system, equal to 1,000 meters or approximately 0.62 miles, used to measure distance.